Life insurance is a big investment in your future. When choosing a life insurance provider, you’ll want to make sure that they are someone you and your family can trust during a difficult time. A life insurance provider you may have heard of is American Income Life Insurance.

American Income Life Insurance is sold differently than many other companies, as they use a multi-level marketing structure. American Income Life Insurance offers many legitimate policy types, but there are also some downsides to be aware of before you make a purchase. Here’s what you need to know before you sign up for American Income Life Insurance.

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About American Income

Is American Income Life Insurance LegitAmerican Income was founded in Waco, Texas in 1951. They have a very long history of providing supplemental insurance to credit unions and labor unions but have since expanded to offer a wide range of policies. They are a subsidiary of Globe Life and are currently licensed in 49 US states, Washington DC, and Canada. Although they are not licensed in New York, they do have a New York-based subsidiary called National Income Life. American Income licensed National Income Life in 2000.

It’s important to note that American Income uses multi-level marketing tactics to sell insurance and recruit new agents. Agents are independent contractors who are paid entirely on commission, which means they only earn money when they make a sale. Each agent is also expected to recruit new agents, and they will earn a percentage of the sales that their recruits make.

The Downsides of Multi-Level Marketing

As a customer, there are a few reasons to be wary of companies that use multi-level marketing strategies. The first is that many agents are very inexperienced. Agents often join as a way to make a bit of extra income, instead of pursuing insurance sales as a full-time job. This means that they may not be able to give you the expert guidance that an independent, full-time insurance agent would be able to provide.

Additionally, agents are only paid when they make a sale, or when their recruits make sales. This means that they may be biased when providing you with information about their policies or the company in general. Many agents are also more concerned with recruiting new agents than making sales, which can also affect the overall quality of your customer service.

What Kinds of Policies Does American Income Offer?

Although American Income’s multi-level marketing sales strategies are questionable, they do offer legitimate life insurance policies. If you do decide to purchase a life insurance policy from them, regardless if it’s a small policy or a million dollar insurance policy, you can count on their coverage regardless of the current economic climate. They have an A+ rating from AM Best, which is an independent firm that assesses the financial stability of insurance companies and other financial institutions.

American Income specializes in whole life insurance policies. As the name suggests, these policies will cover you for your entire life, regardless of your age. Whole life insurance policies also have a cash value component, which means that they earn money over time and you can treat them as a financial asset. They also offer a terminal illness rider, which means that you will be able to access your death benefit to pay for medical care if you get sick.

However, American Income’s policy is different from other insurance providers in that they are non-participating and don’t offer dividends. They do guarantee a rate of 4.5% growth on the policy value, but your policy will not earn dividends the same way that other whole life insurance policies would. This means that you won’t have the opportunity to make as much money in the long run.

American Income also offers term life insurance. Term life insurance only lasts for a specific period of time, usually somewhere between 10 and 30 years. It is more affordable than whole life insurance and does not have a cash value portion. For most people, term life insurance provides the best value for money.

American Income also offers a set of what they call supplemental health insurance. These include accident insurance, hospital indemnity, cancer protection, and critical illness insurance. While each of these policy types is slightly different, they generally will offer financial protection if the policyholder ends up in the hospital for an extended period of time or needs ongoing medical care. While these policies might sound appealing, you can usually get better coverage by investing the money in a high-quality health insurance policy. You’ll want to weigh all of your family’s options for healthcare coverage before committing to any of these policies.

What Is American Income’s Customer Service Like?

American Income gets very poor reviews for customer service. Customers report that it is very difficult to get in touch with agents or customer service representatives as needed. It can also take a very long time to get approved for a life insurance policy, and the application process can be confusing. American Income gets poor ratings on the Better Business Bureau website as well as on other customer review sites.

While you can manage some aspects of your policy and view important documents on American Income’s website, you’ll still have to do most things over the phone. This can be very frustrating, particularly for busy tech-savvy customers that may not have time to wait on the phone.

The Verdict – Our American Income Review

American Income does offer legitimate life insurance policies. They are very financially strong and can be trusted to pay their claims. However, there are many aspects of their business that are concerning. Because of their multi-level marketing structure, customers won’t get the expertise and reliable customer service that they would from a larger, more trustworthy company. Their whole life products also won’t provide as much value as those from other companies, and they don’t have many customization options. Most consumers would be better off purchasing life insurance from another company.

American Income Life Company Information
Company NameAmerican Income Life
Year Founded1951
S&P RatingAA-
Fitch RatingA+
A.M. Best RatingA+
Customer Service Phone Number800-433-3405
Contact Page
Website URL


  1. I am actually a policy owner with AIL and have been for years. I have a personal agent who I contact when I have questions or need to update my plan and she’s always been responsive.
    Do your own research, but I’ve recommended my agent to several friends and they all enrolled. I can’t speak for all agents, but mine is great and the company is good too.

  2. Hey, the information you have in this post is inaccurate. I work for this company, and they issue me a flat payment every week regardless of what I earn. They do expect me to earn money for the company too, but I get that weekly payment no matter what. It’s not a multilevel marketing company. I have been a part of those too, and this is not the structure of this company. Maybe I should report this article to the company and have them sue you for libel.

    1. I’ve also worked for this company and it’s remote and only pays commission while expecting you to work 10 hour days during training. I don’t know where you worked for this company, but this post is accurate.
      Most of the leads I’ve gotten are basically cold calls, if not all of them.
      They push you to recruit and to find referrals on your own by harassing people online.
      Not to mention how they add this guise of “we have to cover these benefits” to trick people into sitting in presentations.
      This is an MLM company, they’re just very sly about it and tell the agents to put “confidential company” when putting out thousands of job posts.
      I’m sorry they successfully brainwashed you, but this is a severely inaccurate comment.

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